Eric Johnston, Head of Equity Derivatives and Cross Asset, at Cantor Fitzgerald, said that risk assets will benefit as President Donald Trump influences the Federal Reserve.
On August 26, speaking in an interview with CNBC, Johnston shed light on Federal Reserve Chair Jerome Powell’s dovish comments at the Jackson Hole symposium, where he hinted that a rate cut in September is on the way.
Bitcoin, XRP, and other cryptocurrency assets remained relatively flat after the speech, but Ethereum reached an all-time high of $4,935.
However, risk assets fell over the previous two sessions as investor expectations of a rate cut in September lost confidence.
Cantor Fitzgerald is a New York–based financial services firm specializing in investment banking, capital markets, and brokerage. It’s one of Wall Street’s oldest institutions, founded in 1945. The firm also became a key player in crypto, serving as a custodian for Bitcoin ETFs.
Johnston argues that the Fed’s direction will increasingly align with Trump-appointed members who want to keep the economy running hot with lower interest rates.
“They’re going to be looking out 5, 10, 15 years, and trying to balance inflation with employment,” Johnston said.
Johnston views Powell’s dovish-leaning speech as an indication that the Fed’s independence could be impacted by political decisions.
“Okay, so absolutely, in terms of you like the home builders, and we also like small caps. I think small caps do very well in this current environment,” he noted. Lower borrowing costs are expected to benefit more debt-laden companies, with investors “more apt to buy a riskier equity.“
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Johnston also projected that the U.S. economy by 2026 would show strong support for low tariffs and positive trends in both on-shoring and foreign direct investment.
Turning to digital assets, Johnston said Cantor Fitzgerald remains bullish on Bitcoin. “We’ve been bullish on Bitcoin for a while now,” he said, citing cheaper money, increased money supply, institutional adoption, and legislative support.
“All of this should continue to be very positive for Bitcoin, and we think this rally that we’ve seen will continue.”
For Johnston, the following factors present a bullish picture:
Bitcoin, he emphasized, is designed to capitalize on the abundance of liquidity and risk-taking behavior.
At press time Bitcoin is trading at $111,313.62, up 1.39%, and Ethereum is up $4,618.99, up nearly 5% in the last 24 hours.
This story was originally reported by TheStreet on Aug 27, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.